Doubt enters your mind as day number 174 passes and still no reasonable offer on your listing. You may ask yourself; did I make the right decision hiring this real estate agent? I know the market is in a slump but the Miller's sold their home in 45 days and it's similar to mine. Screaming at the top of your lungs could help, but I doubt it... and feeling that it's too late to pray doesn't make buyers come any faster. The reality of the situation is that most Realtors are well trained in their field and the ones that are surviving in today's market are usually the good ones. It's just not working! What can I do?

Stop for one minute and think what you can do to make your property stand out from the rest. Share ideas with your agent or implement them yourself. I often quote Albert Einstein who I believe said "The definition on insanity is doing the same thing again and again and expecting different results."  Stray from the normal market strategies and take a walk on the wild side. Real Estate Auctions Work!

The National Auctioneers Association said residential real estate is the auction industry's fastest-growing sector, noting that real estate auctions grew 39 percent from 2003 to 2006. This year, they jumped 3 percent from the second to the third quarter. 

Auctions work well in a soft market because they ease buyers' concerns about overpaying. Now that the market has slowed, sellers are looking at the auction method as an accelerated marketing program to move stagnant real estate.

1.       When do you need to have your property sold? (Is time important to you)

2.       Are you flexible in your pricing? ( Is price your only concern)

3.       Are you willing to accept market value for your property, or do you expect more?

Interviewing our sellers is the reason we are extremely successful in our auction sales. Most of our sellers are homeowners that are not in a distress situation. They merely want to sell their homes. Choosing the correct marketing team to sell your home shouldn't be difficult.

An auction -- through TRAC -- should be your first alternative, not your last resort. 

Paul Sobwick, Lead Auctioneer, CAI, AARE, CES

Welcome to the TRACblog, a new (for us) means to communicate with our visitors and valued clients.  We want to hear from you, and we want to help you with your auction sales.  If you have any auction-related question you want answered, this is the place to ask it!  Simply make a "Comment" to this blog.  One of our experienced auction professionals will then gladly chime in.

We look forward to your questions, and to continuing to provide the best service in the auction industry.

--Paul Sobwick, CAI, AARE, CES 

TRACauctions

The following is a collection of common auction questions which I recently answered in a email to a prospective bidder. Please feel free to contact me if you would like clarification or to further discuss some auction questions. 

Questions:

Is there a reserve for the auction sale of _________ property?

What is the auction reserve price?

How much do you think the _______ property will sell for at auction? 

Answer:

There is always a reserve on every auction no matter the type unless stated otherwise. Unless you see “Sold without reserve” or “Sold Absolute to the highest bidder regardless of price” it is a sale “with reserve”. Some auctioneers have gone so far as to say “Sold Absolute above Price $X” which is considered by many in the industry to be highly unethical and misleading as it is truly a reserve sale.  

The most common questions that I get every day are “What do you think it will sell for” and “What is the reserve?” The first question is completely unanswerable. Just as a listing agent truly cannot tell a client what the final sale price will be and an appraiser cannot tell you what it will actually sell for, only their “opinion of value.” It is a buyer’s and Buyers Agent’s job to determine an estimation of value prior to attending the auction and determine a maximum buy price. It’s the buyers job to buy the property for that amount or less.  

The answer to the second question is one that, unless stated in the advertising, is kept confidential between the seller and auctioneer. Ultimately, the reserve is nothing more than an insurance tool for the seller to guard against a ridiculously low sale price and for the auctioneer to judge the sellability of the property.  

It is a good auctioneer’s duty to bring only motivated sellers and highly sellable properties to an auction sale. In the case of many auction companies now, the Auctioneer acts as a facilitator, intermediary and bid caller at the auction. It is more often the job of an auction consultant of the company, such as myself, to identify good auction candidates. The day of the auction the reserve more often than not evaporates or drops significantly. I‘ve personally seen properties sell for as little as 1/3^rd of the reserve and as high as 3 times the reserve as recently as this last summer.  

Hope this answers some questions. Thanks.

 -Josh Halbedel

Certified Auction Consultant, Principal

www.TRACauctions.com

josh@tracauctions.com

Mobile: 703.447.4950 

Office: 888.704.TRAC (8722) x124

re·al es·tate auc·tion (noun) “The firm and time defined sale of real property by competitive bid.”                           

At TRAC, we are constantly asked what makes one property a good candidate for auction versus another.  There is no simple answer, but we can provide some general guidance.  Today's post concerns the equity position of the owner.

First, let's make one thing clear: all properties are potential auction properties.  In some parts of the world (e.g., Australia), the auction method of marketing is actually the first option for a property owner.  And, according to the most recent auction industry statistics, the auction format is rapidly gaining market share in the U.S. when compared to the traditional "list and wait" method.  That said, properties with existing equity and owners who are flexible on price and financing tend to be easier to sell at auction.

Existing equity is key because among other things it allows various auction marketing methods to be considered.  For example, a property with no existing mortgage, in a desirable location and in good physical condition might be a perfect candidate for an absolute auction (an auction in which the property will be sold to the highest bidder regardless of price).  Absolute auctions create the most buzz and excitement of all, and they are very well attended, because buyers KNOW the property will be sold on a given date at a given time.  An absolute auction is not a possibility when there is considerable mortgage debt compared to value. 

Now, it is possible to auction properties with negative equity (i.e., those with mortgage payoffs in excess of their value) but the main problem with these scenarios is that most auction purchasers want to know when the gavel falls (or shortly thereafter) whether or not he or she is moving forward to settlement.  Most negative equity scenarios require at least one third party approval to be obtained prior to contract ratification.  This uncertainty and delay can have a detrimental effect on bid amounts.  Accordingly, we make sure prior to accepting such a property that the seller and any lenders involved are committed to providing prompt, decisive action following the auction to wrap up the sale.

A seller who is flexible on price drastically increases the chance of successful sale....  this goes without saying.  However, a seller willing to take back some seller-held financing also increases the chance for sale, especially in the current mortgage climate.  Second trusts and piggyback loans were once commonplace in purchase transactions but now they are almost non-existent.  Many lenders are willing to lend when the seller holds subordinate financing.

Stay tuned to this page for our next entry on what makes a property a good auction candidate....

Tom Gimer, Principal -- 888.704.8722 x111

--TRACauctions

Don't miss the second -- and likely last -- chance on this beautiful Avalon condo residence.  Motivated seller and immaculate property.  Bring TRAC your best offer and we'll present it to the seller.  Take advantage of the TRAC buyer incentive program.... and you'll find yourself the proud owner of this lovely Avalon home.

--TRACauctions

In effort to increase buyer participation, and in acknowledgment of the fact that some potential buyers may not feel completely comfortable with the live auction format, TRAC announced this week the kick-off of its Proxy Bid Program.  The program allows bids to be made without the bidder being physically in attendance at the auction.

Through this program, bidders are able to set their maximum bid amount, and an agent is appointed to bid for the bidder at the auction.  Much like the bidding systems of many online auction platforms, this maximum bid amount is kept confidential and purchases are obtained for the bidder at the lowest possible purchase price.  If a proxy bid exceeds the seller's reserve (in an auction with reserve), the bid is made on behalf of the bidder at the reserve and it is only increased as other competitive bids are made.

Bidders who wish to participate by proxy must submit a fully executed Proxy Bid Agreement to TRAC at least three (3) hours prior to the auction.  If there is a buyer's agent involved, he or she must register on behalf of the client in advance, in accordance with TRAC's Terms and Conditions.

As with any program or service that TRAC offers, we are happy to discuss this Program with any potential bidders to make sure they understand the system.  Submitting a Proxy Bid Agreement to TRAC in which the winning bid is made has the same legal consequence as being the high bidder at the auction.

Don't miss out on seeing this great TRAC property

2349 Southfield Ct
Finksburg Md 21048
4-5 Bedrooms
4 full baths
1 half bath
Listed at $649,944

Let me show you inside....

Make a grand entry into the two story foyer with gleaming hardwood floors. This four to five bedroom home in Highland View Estates was the largest model in this sought after Finksburg location. This home has a first floor library.

The finished lower level with sliding glass door to the outside, boasts a full in-law suite with bedroom, bath and recreation room.

Expreince the joy of cooking in this fully equipped gourmet kitchen with upgraded wood cabinets, elegant granite counters on the center island including the convenient breakfast bar. This special kitchen has gas cooking.and is loaded with appliance.

The adjacent family room with soaring ceilings, flooded with sunshine ,will be the center of your entertaining . And the beauty of the stacked stone fireplace goes all the way up those cathedral ceilings. This area has it's own stairway to the upper level.

The elegant "live in" bedroom is huge and is enhanced by the tray ceilings, a sitting area and of course has a huge walk-in closet. jacuzzi and separate shower.

A second bedroom has it's own private bath and bedroom three and four is separated by a buddy bath.

This Tennyson model built by Grayson homes sits on an 1+ acre lot and has a total of 5400 square feet. Notice the photos below of a former model.

Call me, Margaret Rome, at 410 530-2400 today to discuss this lovely property!